Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-07-04-Speech-1-067-000"
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"en.20110704.21.1-067-000"2
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Mr President, as Mr Canfin said, with each day that passes, if we look closely at what is happening on the markets, we are reminded of the urgent and topical nature of this text. That is why, Mr Canfin, my entire Directorate-General and my team have worked so quickly, I think, and so seriously in four and a half months; on 15 September it will be a year since we tabled this text. I see the time passing, we know that times passes much more quickly in the world of the markets than in the world of democracy, and that is why I hope, like you, that you will be able to follow up the good work that you have done with the Hungarian Presidency recently in order to find a solution and to reach some compromises.
Point two: regarding the restrictions on short selling and the ‘locate rule’, which you mentioned, we must maintain effective and sufficiently binding measures for market operators. Having different provisions for shares and sovereign debt may be an option, Mr Canfin, but this must not result in requirements that are too flexible and hence ineffective.
Point three: regarding ESMA’s powers, it is very important for that authority – I shall say it again in relation to this text – to be able to carry out its coordination and, in some cases, intervention role; this was a requirement laid down in ESMA’s founding regulation, which you yourselves consolidated, and this regulation officially authorises such intervention under certain circumstances. The issues relating to sovereign debt are, of course, particularly important for the Member States. We can see this very clearly at the present time, but maintaining a European regulatory framework that dovetails with an authority that can act effectively is also very important. I made a promise, during the recent ECOFIN Council in May, to work with you and with the Council on an appropriate solution.
Once again, I am very grateful to you for having properly understood and worked on this text, which I consider to be one of the bricks that we talked about earlier, and for having decided to take the few days or weeks necessary to work effectively on the trialogues and to bring them to a successful conclusion.
Ladies and gentlemen, the 2008 financial crisis and the stock-market collapse that followed clearly illustrated the consequences and the risks that can result from uncontrolled movements on the financial markets, which are sometimes encouraged by a number of reprehensible practices that we must regulate. The 2009 bond crisis highlighted the fact that these phenomena can affect bond markets too by causing serious problems for everyone operating on them, including Member States when they try to raise capital.
In both cases, the Member States reacted urgently, and often in a disorderly fashion, without having the information and the resources necessary to act effectively and within a genuinely European framework.
The draft regulation on short selling and credit default swaps (CDS) is specifically aimed at remedying this situation. We want to make these practices more transparent. Although they are often useful, they can have an impact on the markets by increasing volatility. The regulation must enable national regulators to act effectively, within the comprehensive and coordinated European framework that we want to consolidate.
Faced with markets that are still unstable and with the persistent problems concerning the debt of certain Member States, Europe must take swift action, and it must take practical action.
It is vital that the European Parliament, the Council and the Commission can make progress on reaching a dynamic compromise, something which you yourself want, Mr Canfin, and the few weeks that you are going to have should make this possible. I am very grateful to you, Mr Canfin, for the very effective work you have done alongside and with the shadow rapporteurs, Mr Ferber, Mr Goebbels, Mr Schmidt and Mr Kamall, and the Presidency, which has supported these efforts, as you said yourself.
The text put to the vote in Parliament and the general Council agreement are aligned on many points now. I think that the trialogues have made this alignment process possible, and I hope that it will succeed.
I would just like to raise three points in your presence: the purchase of naked CDSs, the restrictions on naked short selling, and the powers of the European Securities and Markets Authority (ESMA), which you yourself mentioned, Mr Canfin.
Point one: regarding the sensitive issue of CDSs on sovereign risks and the possibility of buying them without being exposed to the underlying risk, therefore naked, I believe that appropriate action should be taken. I have reservations, as you know, about the effects of an unconditional ban on naked CDSs where the liquidity of sovereign markets is concerned and about the impact that that might have on the bond market. I think that we need to change the status quo and not leave it up to the Member States to decide whether or not to ban naked CDSs. We must not let this opportunity slip; that is why I can confirm to you that we are willing to work with the European Parliament and with the Council in order to come up with a solution that responds to these concerns, which are in fact legitimate."@en1
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